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787 orders and deliveries are very nice, but the bread and butter of Boeing and Airbus remains the 737 and A320 families. As you say Boeing has 500 orders for 7
by Xixi 7y ago
787 orders and deliveries are very nice, but the bread and butter of Boeing and Airbus remains the 737 and A320 families. As you say Boeing has 500 orders for 787 yet to deliver, but they most importantly have 4,500 of the 737 remaining to deliver. Same for Airbus, they have about 600 orders for the A350 yet to deliver, but they most importantly have over 6,000 A320 in the pipeline.
The biggest issue for Boeing is that the MAX sold about 5,000 frames vs 7,000 for the A320NEO, going from a 50%/50% market shares (737NG vs A320) down to 40%/60% market shares (737MAX vs A320NEO). On the other hand the A320 is practically sold out for the next decade (Airbus is aiming at a production of 750/year, and that's quite a challenge), so the ratio is unlikely to move much.
- snowwrestler 7y agoThanks, interesting. Do you think this dynamic has already been priced into Boeing's stock now, which is why it did not move much on this 50 plane order?
- Xixi 7y agoYes, I think it is, none of what I wrote should come as a surprise to anyone even casually reading news about Boeing/Airbus. Certainly not an analyst crunching numbers.